Toshiba Corp. will likely miss a third deadline to report its fourth-quarter business results, two sources said, forcing the conglomerate to ask for a fresh extension or face a possible delisting from the Tokyo Stock Exchange.
A postponement of the report past the April 11 deadline looks necessary because Toshiba’s auditor, PricewaterhouseCoopers Aarata LLC, has questions about results for the business year through March 2016, said the sources. One of the sources had direct knowledge of the delay and the other had been briefed on it.
Toshiba also may not be able to choose a favored bidder for its semiconductor business by its general shareholders meeting in late June, said another person with direct knowledge of the matter. He had previously said the decision would be made in May, or at least before the shareholders meeting.
The conglomerate, which only recently emerged from a huge accounting scandal, has been dragged down by billions of dollars of cost overruns at its former U.S. nuclear unit, Westinghouse Electric Co.
Disagreements with auditors forced the company to postpone its earnings release in February and again in March. After April 11, Toshiba will have eight working days to publish its results for the quarter ended Dec. 31 unless it can persuade regulators at the Finance Ministry to give it more time.
Despite some progress in tackling writedowns at Westinghouse, a new delay to the parent’s earnings announcement would underscore the seriousness of the financial crisis that threatens the 144-year-old company. For the business year ended Friday, Toshiba forecasts a net loss of ¥1 trillion ($9 billion).
Westinghouse on Wednesday filed for Chapter 11 bankruptcy protection from creditors in New York, a move by Toshiba to fence off losses at the unit, which it bought in 2006 for $5.4 billion. The filing marks the start of what will likely be lengthy and complex negotiations with creditors and customers that could embroil the U.S. and Japanese governments.
At an extraordinary meeting on Thursday, Toshiba’s shareholders agreed to split off the company’s profitable NAND flash memory unit, green-lighting a plan to sell most or all of the business to raise at least ¥1 trillion to cover charges at Westinghouse.
The company received about 10 bids in the first round, which ended Wednesday, and some were as high as ¥2 trillion, the semiconductor business source said.
A source earlier said Western Digital Corp. and Micron Technology Inc. of the United States, South Korea’s SK Hynix Inc. and financial investors were among those expressing interest.
The government-backed Innovation Network of Japan Corp. and the Development Bank of Japan are also expected to submit bids as part of a consortium, sources have said.
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